One of the main reasons behind stealth wealth is security. When someone has a high net worth, they can become a target for criminals, scammers and con artists.
Stealth Wealth To Avoid The Government
Once you make much more than $250,000 a year, you will face an abundance of taxes or tax phaseouts: Medicare tax, AMT, deduction phaseout, credit eliminations, education tax, Net Investment Income tax, etc.
WEALTH IS QUIET because it's not tied to money, it's a by product of generational wealth creation abilities. RICH IS LOUD because it is tied to money and status.
Stealth wealth has been gaining popularity in recent years. As the name implies, it's the opposite of flaunting wealth (or pretending to be wealthy like the $30,000 millionaire). Wealth is what you don't see and people who practice living a stealth wealth lifestyle are extra proud of their hidden ability.
It turns out there's a scientific reason the billionaires routinely wear the same thing. By sticking to a kind of uniform, they're avoiding a phenomenon known as decision fatigue, which describes the way choices become harder and harder as a day goes on and your finite store of energy gets depleted.
Families with "old money" use accumulated assets or savings to bridge interruptions in income, thus guarding against downward social mobility. "Old money" applies to those of the upper class whose wealth separates them from lower social classes.
The rich use laws to protect their assets. They use legal entities created under the different laws, trust laws, corporate laws, partnership laws, and tax loopholes available to all, not just the rich. The rich use laws to protect their assets.
Stealth wealth is the term for keeping your net worth and wealth amounts to yourself. This means you don't let others know how much money you make or have, including people you know well, such as relatives and good friends.
Stealth wealth style has a strict palette of subdued neutrals: cream, taupe, grey, charcoal, navy and all the shades of beige, from pale biscuit to rich caramel. (Beige isn't boring. Beige is rich.)
Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills that they keep rolling over and reinvesting. They liquidate them when they need the cash.
Note well that to be considered a millionaire by the standards of wealth research, a household must have investable assets of $1 million or more, excluding the value of real estate, employer-sponsored retirement plans and business partnerships, among other select assets.
New York and Los Angeles are home to the most millionaires in America because of their large populations and lucrative industries.
Most federal employees do not embark on a government career with the stated intent of becoming rich because there are other fields that are going to pay more money than spending 30 years or so working for Uncle Sam. But that doesn't mean that you are not rich or will not become rich as a federal employee.
How much is the Rockefeller family worth today? Rockefeller family's Net Worth is over $360 Billion Dollars.
Pew defines the upper class as adults whose annual household income is more than double the national median. That's after incomes have been adjusted for household size, since smaller households require less money to support the same lifestyle as larger ones.
The Vanderbilt Family
The Vanderbilts are one of America's oldest old money families. The family is of Dutch descent, and rose to prominence during the Gilded Age in the final decades of the 19th century.
The average billionaire only holds 1% of their net worth in liquid assets like cash because the vast majority of their fortunes are usually tied up in business interests, stocks, bonds, mutual funds and other financial assets.
The lawsuit would only impact the assets within the LLC. While you could lose that single property to a lawsuit, it is a much better option than losing the property AND your personal assets. The cost of forming an LLC protects your house and other assets from landing in a future settlement or judgement.
And people living in low-income neighborhoods–the ones who are relatively well-off compared to their neighbors–are nevertheless worried that they'll be misperceived as resource-poor. So they purchase expensive and conspicuous goods, to make sure their resources are visible to outsiders.
Zuckerberg explained that there are, in fact, several of the same shirt, which is good because otherwise he'd be kind of smelly. (He doesn't actually wear it every day either. There are many pictures of him wearing different shirts, but he does usually look like he's wearing some variation on a theme.)